WizzAir, the eastern European budget airline, is preparing to join the ranks of carriers with a London stock market listing through a flotation that is likely to raise hundreds of millions of pounds.

Sky News understands that WizzAir has launched a beauty parade of investment banks to oversee the listing, which is expected to take place later this year.

The company launched its maiden flight in 2004 from Katowice and uses Luton as its UK base.

WizzAir now has 16 operating bases in eastern Europe and flies on more than 250 routes. It recently set itself the ambition of more than doubling its traffic by 2020 to 25m passengers annually, amid

Described as "a mini-Ryanair" by one City analyst, Hungary-based WizzAir is seeking to exploit the growth of the aviation sector in eastern Europe by introducing travellers in parts of the region to the concept of low-fare air travel.

Currently owned by a string of backers including DNV, a German transport-focused bank, the company's youth means that like carriers such as easyJet and Ryanair, it bears few of the legacy costs of older airlines.

Joszef Varadi, WizzAir's chief executive, told the Financial Times in an interview last year that he was optimistic about the airline's prospects.

“The ability of the industry to stimulate new traffic has become constrained but the low-cost sector can still grow at the expense of the established traditional carriers,” he said. “I think the kind of growth we are achieving today, even under tough conditions, can be delivered.”

The latest round of talks with bankers are not the first time that WizzAir has considered a stock market listing, with its owners having examined such a move several years ago.

In April, Pegasus, a Turkish discount airline, listed on the domestic market although it is unclear whether bookings have been affected by the ongoing protests in the country.

WizzAir's ambition to list in London comes amid a revival of the market for initial public offerings (IPOs) as stock market investors seek new growth opportunities for their cash.

Among the companies which have floated so far this year are Countrywide, the estate agency chain, Esure, the insurer, and HellermannTyton, a manufacturer of industrial products.

A number of others are in the queue for a listing, including Foxtons, the estate agent, and Merlin Entertainments, the operator of visitor attractions such as Thorpe Park and Alton Towers.

A spokesman for WizzAir declined to comment on its plans, which analysts say could value the company at around £800m.